FX.co ★ Spain Inflation Rate Hits Two-Year High in July

Spain’s consumer price inflation accelerated to 3.5% in July 2026, up from 3.2% in June and slightly above the market consensus of 3.4%, according to preliminary estimates. This marks the highest reading since May 2024 and reflects rising costs for fuels, lubricants, and electricity, as renewed tensions in the Middle East drive energy prices higher once again. Core inflation, which excludes unprocessed food and energy, also ticked up to 3.0% from 2.9% in June, returning to May’s near two-year high. At the same time, the EU-harmonized inflation rate climbed to 3.8%, beating the 3.7% forecast and remaining well above the European Central Bank’s 2.0% target.